The issue of Abuja double taxation has become a significant concern for businesses operating within Nigeria’s capital, leading to widespread complaints of harassment and regulatory abuse. The Federal Capital Territory Administration (FCTA) is actively sensitizing hundreds of food vendors, hoteliers, quarry owners, plaza operators, and banks about persistent demands for payments by the Abuja Municipal Area Council (AMAC), often for services already covered by the FCTA. This ongoing dispute highlights a critical challenge for business stability and regulatory clarity in Abuja.
Despite numerous clear judicial pronouncements affirming the FCTA’s exclusive authority over public health and environmental services, business owners continue to face unwarranted demands. Many report persistent demand notices, threats of business sealing, and even court summonses from AMAC, creating an environment of uncertainty and financial strain for businesses grappling with potential double taxation. This situation has prompted the FCTA to intensify its awareness campaigns, aiming to empower businesses with the knowledge of their rights and the established legal framework.
What is double taxation in Abuja? The term refers to the illegal practice where businesses are compelled to pay for the same regulatory services, such as public health inspections or environmental sanitation, to two different government bodies – specifically the FCTA and the AMAC – despite FCTA holding exclusive jurisdiction. This practice, deemed unlawful by multiple court rulings, places an undue financial burden on businesses.
The controversy is firmly rooted in landmark court decisions that have unequivocally invalidated AMAC’s actions. A pivotal ruling in Bureau of Public Enterprises (BPE) v. Abuja Municipal Area Council (Suit No. FCT/HC/CV/546/2022), delivered on March 13, 2023, saw Hon. Justice Muawiyah Baba Idris declare AMAC’s 2020 Environmental Sanitation and Premises Inspection Bye-Law illegal and void. The court found that this bye-law lacked the mandatory ministerial approval stipulated by Section 43 of the Public Health Act, thus stripping AMAC of authority to legislate or enforce public health regulations, a power reserved for federal ministers.
This legal precedent was further reinforced on February 14, 2025, in Devyani International Nigeria Ltd. (KFC) v. AMAC (Suit No. CV/1642/2024). In this case, Hon. Justice Y. Halilu ruled that critical services like food safety regulation, medical fitness certification, and environmental health services fall squarely within the FCTA’s jurisdiction. Citing the National Health Act 2014, the FCT Establishment Order No. 1 of 2004, and previous decisions, the court condemned AMAC’s actions as unlawful trespass, ordering a refund of N1,222,000 and issuing a perpetual injunction against further enforcement by AMAC. This clearly defines the FCTA vs AMAC jurisdiction.
The Director of Enforcement for FCTA, Ojo Adewale, recently addressed journalists in Abuja, expressing the administration’s frustration with the ongoing defiance. He emphasized that despite constitutional provisions and the FCT Act empowering the FCTA for inspections across various industries, AMAC and other area councils are attempting to usurp these duties. Adewale highlighted that by law, these duties are strictly the responsibility of the FCTA, yet businesses are continually forced to pay AMAC, leading to significant challenges for operators in the food, hospitality, and construction sectors. What is double taxation in Nigeria without clear enforcement? It leads to chaos.
Business owners caught in the crossfire voiced their profound frustration. Rebecca Aminu, an affected entrepreneur, stated, ‘We’ve complied fully with FCTA requirements, yet AMAC keeps issuing notices for the same certifications and threatening to seal our premises. This harassment is crippling small businesses in Abuja.’ Similarly, Folorunsho Emmanuel echoed these concerns, explaining, ‘Once you pay FCTA, AMAC comes next asking for the same money for the same service. When you resist, you’re dragged to court. This double taxation is unsustainable.’
In response to these challenges, Alex Ogenna Ibe, an FCTA Legal Representative, reiterated the validity of the subsisting court orders and issued a stern warning against continued defiance by AMAC. He stressed that flouting valid judgments constitutes contempt of court and revealed that the FCTA is contemplating further legal redress to compel compliance. The FCTA is committed to protecting business operations and preventing further financial burdens, offering legal support to those who have paid FCTA but are still targeted by AMAC.
The persistent issue of double taxation significantly impacts the ease of doing business in Abuja. It not only creates financial strain but also introduces regulatory uncertainty, potentially deterring new investments and stifling growth for existing enterprises. This ongoing FCTA AMAC dispute undermines efforts to foster a transparent and predictable business environment, crucial for economic development in the federal capital. As businesses plan for the future, understanding Abuja business regulations 2025 will be key to navigating the landscape.
For business owners, understanding their rights and obligations is paramount. The FCTA advises businesses on how to avoid double taxation Abuja by making all required payments directly to the FCTA for public health and environmental services. If an AMAC official demands payment for services already settled with the FCTA, businesses are encouraged to reference the existing court judgments and refuse payment. The FCTA’s legal unit is prepared to defend businesses in court against unlawful demands, providing a crucial safeguard against harassment and illegal charges, especially concerning double taxation. This serves as an essential Abuja business owners guide, particularly for those new to business registration Abuja for beginners.
As the FCTA continues its sensitization efforts and explores further legal avenues, the hope is for a definitive resolution to the double taxation crisis. The administration aims to ensure that all regulatory bodies adhere strictly to legal frameworks, thereby creating a more conducive and fair operating environment for businesses across the Federal Capital Territory. The Abuja FCTA news update will be crucial for all stakeholders.
Ultimately, the FCTA is resolute in its commitment to protecting businesses from the unlawful practice of Abuja double taxation. By upholding the rule of law and enforcing court judgments, the administration seeks to ensure that businesses can operate without fear of harassment or undue financial pressure. This ongoing battle for regulatory clarity is vital for the economic health and development of Nigeria’s capital city.
